This question is taken in 2 pictures may I please receive help answering this one question Gallatin Carpet Cleaning Is a small, famly-owned business operating out of Bozeman, Montana. For Its services, the company hasalways charged a flat fee per hundred square feet of carpet cleaned. The current fee Is $22.25 per hundred square feet. However,there Is some question about whether the company Is actually making any money on Jobs for some customers-particularly thoselocated on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, hassuggested Investigating this question using activity-based costing. After some discussion, she designed a simple system consisting offour activity cost pools. The activity cost pools and their activity measures appear below:Activity Cost PoolCleaning carpetsTravel to jobsActivity MeasureSquare feet cleaned (90s)Miles drivenActivity for the Year13,500 hundred square feet300,e00 miles1,700 jobsJob supportNumber of jobsOther (organization-sustaining costs and idlecapacity costs)NoneNot applicableThe total cost of operating the company for the year Is $347,000 which Includes the following costs:144, 00e32,000$4WagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expensesPresident's compensation8,00026, 00056, eee81,000Total cost347, 000Resource consumptlon is distributed across the activities as follows:Distribution of Resource Consumption Across ActivitiesCleaningTravelCarpetsto JobsJob Support OtherTotalWages78%11%11%100%Cleaning suppliescleaning equipment depceciationvehicle expensesOffice expensesPresident's compensation100%1eex7e%e%1ee%0%81%19%100%8%64%36%1ees67%1eexSFFJob support consists of recelving calls from potential customers at the home office, scheduling Jobs, billing. resolving Issues, and soon.Required:1. Prepare the first-stage allocation of costs to the actiVity cost pools. Distribution of Resource Consumption Across ActivitiesCleaningCarpetsTravelto JobsJob Support OtherTotal78%11%0%11%100%WagesCleaning suppliesCleaning equipment depreciationVehicle expenses100%0%0%0%100%70%0%0%30%100%0%81%0%19%100%Office expenses0%0%64%36%100%President's compensation0%e%33%67%100%Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, billing, resolving Issues, and soon.Required:1. Prepare the first-stage allocation of costs to the activity cost pools.2 Compute the activity rates for the activity cost pools.3. The company recently completed a 200 square foot carpet-cleaning Jjob at the Flying N Ranch-a 55-mlle round-trip Journey fromthe company's offices In Bozeman. Compute the cost of this Job using the activity-based costing system.4. The revenue from the Flying N Ranch was $44.50 (200 square feet @ $22.25 per hundred square feet). Calculate the customermargin earned on this Job.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Prepare the first-stage allocation of costs to the activity cost pools.Travel toCleaningCarpetsJob SupportOtherTotalJobsWagesCleaning suppliesCleaning equipment depreciationVehicle expensesOffice expensesPresident's compensationTotal costRequired 2

Activity cost pool is defined as the total of all the costs linked with performing a specific task…

Distribution of Resource Consumption Across Activities Cleaning Carpets 78% Travel Total to Jobs 11% Job Support Other ex 11% 100% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 100% e% 0% 100% 70% 0% 0% 30% 100% ex 81% 0% 19% 100% 0% e% 64% 36% 100% ex ex 33% 67% 100% Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, blling, resolving Issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools.

Distribution of Resource Consumption Across Activities Cleaning Carpets 78% Travel Total to Jobs 11% Job Support Other ex 11% 100% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation 100% e% 0% 100% 70% 0% 0% 30% 100% ex 81% 0% 19% 100% 0% e% 64% 36% 100% ex ex 33% 67% 100% Job support consists of recelving calls from potentlal customers at the home office, scheduling Jobs, blling, resolving Issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 89TA

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Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.45 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 12,000 hundred square feet Travel to jobs Miles driven 404,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.10 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 8,000 hundred square feet Travel to jobs Miles driven 131,500 miles Job support Number of jobs 2,100 jobs Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 10,500 hundred square feet Travel to jobs Miles driven 93,500 miles Job support Number of jobs 1,700 jobs Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 10,500 hundred square feet Travel to jobs Miles driven 96,500 miles Job support Number of jobs 1,700 jobs Other (costs of idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.30 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.30 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 9,500 hundred square feet Travel to jobs Miles driven 292,000 miles Job support Number of jobs 2,000 jobs Other (organization-sustaining costs and idle…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.45 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Activity for the Year 10,500 hundred square feet 389,000 miles 2,000…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None Activity for the Year 8,000 hundred square feet 407,500 miles 1,900…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.25 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers- particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Activity for the Year 13,500 hundred square feet 300,000 miles 1,700 jobs Number of…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.25 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None Activity for the Year 9,000 hundred square feet 307,000 miles 2,000…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.90 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested Investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity for the Year 9,000 hundred square feet. 150,500 miles Travel to jobs Job support 1,900 jobs Other (organization-sustaining costs and idle capacity costs) Not applicable The total cost of operating the company for the year is $358,000 which includes the…
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Miles driven Number of jobs None Activity for the Year 7,000 hundred square feet 266,500 miles 1,600…